Bookkeeping quiz Financial Accounting Quiz Last updated Feb 2, 2026 Share Bookkeeping quiz Bookkeeping 20 multiple-choice questions Pass Score 70% The questions change when you repeat the exam 1 / 20 An increase in expenses is recorded as : Transfer Debit Credit Adjustment Expenses are debited when they increase. 2 / 20 Which book records credit sales ? Cash book Purchase journal General journal Sales journal Sales journal is for credit sales. 3 / 20 Personal accounts relate to : Assets Incomes Expenses Persons or organizations Personal accounts represent individuals or entities. 4 / 20 Which account normally has a credit balance ? Liabilities Drawings Assets Expenses Liabilities increase on the credit side. 5 / 20 Error of principle occurs when : Figures are transposed Wrong account type is used Entry is omitted Wrong amount is entered It violates accounting principles. 6 / 20 Which system records each transaction twice ? Single-entry system Double-entry system Cash system Accrual system Double-entry records debit and credit. 7 / 20 Which account is credited when goods are sold on credit ? Accounts payable Purchases Cash Sales Sales revenue increases, so it is credited. 8 / 20 Which error is not revealed by trial balance ? Error of posting Error of balancing Error of casting Error of omission Omitted transactions don’t affect equality. 9 / 20 Which document is used to record transactions first ? Trial balance Balance sheet Journal Ledger The journal is the book of original entry. 10 / 20 Returns of goods sold are recorded in : Purchases returns book Cash book Ledger Sales returns book Sales returns book records goods returned by customers. 11 / 20 Trial balance is prepared from : Balance sheet Journal Cash book Ledger Balances are taken from ledger accounts. 12 / 20 Real accounts include : Capital Creditors Machinery Debtors Real accounts relate to assets. 13 / 20 Credit purchases are recorded in : Purchase journal Cash book Sales journal Ledger Purchase journal records credit purchases only. 14 / 20 Trial balance is prepared to: Calculate profit Detect all errors Prepare ledger Check arithmetic accuracy It checks debit and credit equality. 15 / 20 Posting means : Balancing accounts Recording transactions in journal Transferring entries to ledger Closing books Posting moves journal entries to ledger accounts. 16 / 20 Which account is debited when cash is received ? Cash Capital Revenue Expenses Cash increases, so it is debited. 17 / 20 Rule of personal account : Credit what goes out Debit expenses, credit income Debit the receiver, credit the giver Debit what comes in This rule applies to personal accounts. 18 / 20 Capital introduced by the owner is : Income Asset Expense Liability Capital represents owner’s claim (liability of business). 19 / 20 If trial balance agrees, it means : No errors exist Arithmetic accuracy only All errors are corrected Profit is correct Some errors may still exist. 20 / 20 Cash transactions are recorded in: Sales journal Cash book General ledger Purchase journal Cash book records cash receipts and payments. Your score is LinkedIn Facebook Twitter VKontakte 0% Send feedback Bookkeeping quiz
